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Part 7 — Administration of the Regulation of Financial Institutions
Division 1 — BC Financial Services Authority
201 (1) The BC Financial Services Authority must exercise the powers and perform the duties of the Authority under this Act.
(2) Subject to subsections (3) and (3.1), the minister may make regulations
(a) transferring to the superintendent appointed under section 207 a power or duty given to the Authority under this Act or the Credit Union Incorporation Act, and
(b) reversing a transfer of a power or duty made under paragraph (a).
(3) A regulation made under this section must not transfer the following:
(c) the power to make rules under section 201.1;
(d) the power to require the council to establish written administrative policies and procedures under section 226 (1) and the power to give consent to their implementation under section 226 (3);
(e) a power or duty under Part 9, other than a power or duty under section 277, 277.1 or 277.2.
(3.1) A regulation made under this section must be effective on a date specified in the regulation that is at least 3 months after the date of deposit of the regulation under the Regulations Act.
(4) A regulation made under this section may
(a) impose terms and conditions that the minister considers advisable, including limits on delegation by the superintendent under section 207 (2) of a transferred power or duty, and
(b) establish transitional rules in relation to the transfer of a power or duty under subsection (2) (a) or (b) of this section.
201.1 (1) Subject to section 201.2, the Authority may make rules as follows:
(a) respecting the adequacy of liquid assets and the capital base of a financial institution or extraprovincial corporation for the purpose of section 67;
(b) for the purpose of section 67,
(i) prescribing the types of assets and types of liabilities that must be included in determining what constitutes a financial institution's or extraprovincial corporation's capital base,
(ii) establishing formulae or other methods of determining the value of those prescribed types of assets and types of liabilities, and
(iii) prescribing the proportion of the value of those prescribed types of assets, and the proportion of the extent of those prescribed types of liabilities, that constitutes an adequate capital base for a financial institution or extraprovincial corporation;
(c) for the purpose of section 67 (2.1), setting out a percentage, or a range of percentages, of the calculated value of the risk weighted assets of a credit union or extraprovincial credit union;
(d) for the purpose of section 67 (2.2),
(i) setting out activities, circumstances and consequences, and
(ii) establishing matters about which the superintendent must be satisfied before giving consent;
(f) respecting the corporate governance of financial institutions and extraprovincial corporations;
(g) respecting the market conduct of financial institutions and extraprovincial corporations;
(h) respecting codes of market conduct adopted by credit unions and extraprovincial credit unions under section 94.2, including the form and content of those codes and the manner and time for filing them;
(i) for the purpose of section 92.2 (2), establishing requirements for insurance companies that issue, deliver or offer to undertake contracts of insurance through the use of electronic agents;
(j) respecting oversight by insurers of restricted insurance agent licensees;
(k) respecting operational oversight of financial institutions and extraprovincial corporations by the superintendent;
(l) setting out risks to financial institutions for the purposes of section 135.1;
(m) respecting risk management of financial institutions and extraprovincial corporations;
(n) respecting the funding requirements and corporate governance of reciprocal exchanges as defined in section 186;
(o) respecting the methodology for deposit insurance assessments under section 268 or 271;
(p) establishing formulae or other methods of determining the amounts referred to in sections 64 (8) and 65 (3) (b) of the Credit Union Incorporation Act;
(p.1) respecting general meetings of credit unions, and meetings of directors or creditors of credit unions, that are partially electronic meetings or fully electronic meetings, including
(i) prescribing requirements for notice of those meetings, and
(ii) prescribing procedures for voting at those meetings;
(p.2) prescribing circumstances in which a credit union must hold general meetings, and meetings of directors or creditors, that are fully electronic meetings, even if the rules of the credit union provide otherwise;
(q) adopting by reference, in whole or in part and with any changes the Authority considers appropriate, rules or guidelines of other financial services regulatory authorities.
(2) A rule or guideline referred to in subsection (1) (q) may be adopted as amended from time to time.
(3) In making a rule, the Authority may
(a) make different rules for different classes of persons, entities, things or transactions, or
(b) exempt a person or entity or a class of persons or entities from one or more of the rules made under this section.
(4) The Lieutenant Governor in Council may, by regulation,
(a) make a rule or repeal or amend a rule made by the Authority under this section, and
(b) specify powers of the Lieutenant Governor in Council to make regulations under this Act and authorize the Authority to make rules under those specified powers.
(5) A regulation made under subsection (4) (a) is deemed to be a rule made by the Authority.
(6) No rule made by the Authority may amend or repeal a regulation made by the Lieutenant Governor in Council.
201.2 Before making, amending or repealing a rule under section 201.1, the Authority must do the following:
(a) publish the proposed rule for public comment in accordance with the regulations unless the regulations provide otherwise;
(b) obtain the consent of the minister in accordance with the regulations;
(c) comply with any other prescribed procedures and requirements.
201.3 If a rule made by the Authority conflicts with a regulation made by the Lieutenant Governor in Council, the regulation prevails.
203 (1) The chair of the Authority's board of directors may
(a) establish one or more panels of the Authority consisting of one or more directors of the Authority, and
(b) appoint directors as members of the panel.
(2) The chair may refer a matter under this Act
(a) that is before the Authority to a panel, or
(b) that is before a panel to the Authority or to another panel.
(3) In a matter referred to a panel by the chair, a panel has the jurisdiction of the Authority and may exercise the powers and perform the duties of the Authority.
206 (1) The superintendent by order may require a credit union to
(a) carry insurance satisfactory to and against all risks designated by the superintendent on all directors, committee members, officers and employees of the credit union and its subsidiaries, and
(b) insure the credit union and its assets against all other risks designated by the superintendent.
(2) A credit union must maintain insurance required by and in a manner satisfactory to the superintendent.
(3) A credit union and every director, committee member, officer and employee of a credit union must supply the superintendent any information requested by the superintendent pertaining to a director, officer, committee member or employee in connection with any insurance required under this section.
207 (1) The Authority's board of directors must appoint a Superintendent of Financial Institutions in accordance with section 10 of the Financial Services Authority Act.
(a) may exercise the powers and must perform the duties vested in or imposed on the superintendent under this Act and the Credit Union Incorporation Act, and
(b) subject to a limit under section 201 (4), may, in writing and with or without terms and conditions, delegate to an officer, employee or agent of the Authority a power or duty that is transferred to the superintendent by a regulation made under section 201.
(2.1) A delegation under this section is revocable and does not prevent the superintendent from exercising a delegated power.
(2.2) A person purporting to exercise a power of the superintendent by virtue of a delegation under this section must, when requested to do so, produce evidence of the person's authority to exercise the power.
(3) The superintendent must comply with the policy directives given by the Authority.
208 In the administration and enforcement of this Act, the superintendent may
209 For the purposes of the administration and enforcement of this Act and the regulations, the following persons may act outside British Columbia as if acting inside it:
(b) investigators, examiners or other persons
(i) acting under the direction of the superintendent under section 165 or 212, or
(iii) appointed by the superintendent under section 214 or 215.
210 (1) It is a condition of every business authorization that the financial institution that has it must facilitate examinations, audits and inspections under this Act.
(2) For the purpose of an examination, audit or inspection under this Act,
(a) a financial institution and its subsidiary must prepare and submit to the person conducting the examination, audit or inspection the statements or returns with respect to its business, finances or other affairs that the superintendent requires, and
(b) the officers, agents and employees of the financial institution and its subsidiary must cause its books to be open for inspection and must otherwise facilitate the examination, audit or inspection.
(3) In order to facilitate an examination, audit or inspection of the books and records of a financial institution, the superintendent may require the financial institution and its subsidiary to produce the books and records at the principal place of business, or at another place the superintendent may direct.
(4) If an examination, audit or inspection of a financial institution or a subsidiary is made at an office outside British Columbia, the financial institution, if the superintendent so directs, must pay the costs and expenses in connection with the examination, audit or inspection.
211 The superintendent may,
(a) for the purposes of administering this Act, or
(b) on the request of a financial regulatory authority in another Canadian jurisdiction, for the purposes of assisting in the administration of the laws of that jurisdiction regulating deposit business, insurance business or trust business,
order a financial institution to provide information or to produce records specified or otherwise described in the order within the time or at the intervals specified in the order.
211.1 A credit union, an insurance company or a trust company must inform the superintendent immediately in writing if
(a) the credit union, insurance company or trust company has been convicted of an offence in Canada or another jurisdiction arising from a transaction, business or course of conduct related to financial services, or
(b) the credit union, insurance company or trust company has been found by a regulator in Canada or another jurisdiction to have contravened the laws of that jurisdiction respecting financial services.
212 (1) The superintendent must periodically conduct an examination or appoint a person acting under the superintendent's direction to conduct an examination of the condition and affairs of every financial institution.
(2) On the examination required under this section, the superintendent or other person must make reasonable inquiries respecting
(a) the financial institution's condition and ability to meet its obligations as and when they become due,
(b) the adequacy of the financial institution's business and financial practices and of its management procedures and standards, and
(i) any order made under this Act or the Credit Union Incorporation Act,
(ii) a condition under which a consent under this Act or the Credit Union Incorporation Act is given, or
(iii) a condition of its business authorization.
(3) The superintendent or other person may conduct the examination required by this section at the principal place of business and at any office of the financial institution or of any affiliate of the financial institution.
213 (1) The superintendent may address a written inquiry to a financial institution or its subsidiary or to any officer of the financial institution or its subsidiary or to the agent of either of them
(a) for the purpose of ascertaining the condition and ability of the financial institution or its subsidiary to meet its obligations when they become due,
(b) as to the conduct of the business of the financial institution or its subsidiary, or
(c) as to complaints made by insureds, depositors or borrowers of the financial institution or by persons for whom the financial institution or its subsidiary acts in a fiduciary capacity or other interested parties,
and the financial institution, subsidiary, officer or agent so addressed must reply promptly in writing with information or records that the superintendent requests.
(2) If the superintendent makes an inquiry under subsection (1), the superintendent may require the financial institution or its subsidiary to
(a) deliver to each director of the financial institution or the subsidiary a copy of the inquiry and of the reply to the inquiry, and
(b) include a copy of the inquiry and of the reply in the minutes of the next meeting of the directors of the financial institution or of the subsidiary.
Division 1.1 — Special Examinations and Investigations
213.1 In this Division:
"inspection" means a special examination or an investigation;
"investigation" means an investigation under section 215;
"investigator" means a person appointed under section 215 (1);
"special examination" means a special inspection, examination and audit under section 214;
"special examiner" means a person appointed under section 214 (1).
214 (1) By the superintendent's own motion or on a written application by an interested party, the superintendent may appoint a person as a special examiner to make a special inspection, examination and audit of a financial institution's books, accounts and securities, and to inquire generally into the conduct of its business.
(2) An application under subsection (1) must be supported by evidence the superintendent requires for the purpose of showing that there is good reason for requiring the special inspection, examination and audit to be made and that it is not frivolous, vexatious or prompted by malice.
(3) The superintendent may require an applicant under subsection (1) to give security for the payment of the costs of the special inspection, examination and audit before appointing the special examiner.
(4) On the conclusion of the special inspection, examination and audit, the special examiner must report in writing to the superintendent.
(5) On the conclusion of a special inspection, examination and audit, the superintendent may order the financial institution or the party requesting the special inspection, examination and audit to pay the costs of the special inspection, examination and audit.
215 (1) If the superintendent considers it necessary or desirable to establish whether there is or has been compliance by any person with the provisions of this Act, the regulations or the rules made by the Authority, the superintendent by order may appoint a person to make an investigation the superintendent considers expedient for the due administration and enforcement of this Act and in the order must direct the scope of the investigation.
(2) For the purpose of an investigation ordered under this section, the person appointed to make the investigation may investigate, inquire into and examine
(a) the affairs of the person in respect of whom the investigation is being made and records, communications, negotiations, transactions, investigations, loans, borrowings and payments to, by, on behalf of, in relation to or connected with the person and property, assets or things owned, acquired or alienated in whole or in part by the person, or by any person acting on behalf of or as agent for the person, and
(b) the assets at any time held, the liabilities, debts, undertakings and obligations at any time existing, the financial or other conditions at any time prevailing in, or in relation to or in connection with the person and the relationship that may at any time exist or have existed between the person and any other person because of investments, purchases, commissions promised, secured or paid, interests held or acquired, purchase or sale of security instruments or other property, the transfer, negotiation or holding of security instruments, interlocking directorates, common control, undue influence or control or any other relationship.
(3) If an investigation is ordered under this section, the superintendent may also appoint an accountant or other expert to examine records and things of the person whose affairs are being investigated.
(4) Every person appointed under subsection (1) or (3) must provide the superintendent with a full and complete report of the investigation including any transcript of evidence and material in that person's possession relating to the investigation.
215.1 (1) On an application made by the superintendent, if it appears to the Supreme Court that a person outside British Columbia may have evidence that may be relevant to
(a) an investigation ordered by the superintendent under section 215, or
(b) a hearing required or permitted under this Act,
the Supreme Court may issue a letter of request directed to the judicial authority of the jurisdiction in which the person to be examined is believed to be located.
(2) The letter of request referred to in subsection (1) must
(a) be signed by the judge hearing the application or another judge of the Supreme Court, and
(b) be provided to the superintendent for disposition under subsection (5).
(3) A letter of request issued under subsection (1) may request the judicial authority to which it is directed to
(a) order the person referred to in the letter of request to be examined under oath in the manner, at the place and by the date referred to in the letter of request,
(b) order, in the case of an examination for the purposes of a hearing referred to in subsection (1) (b), that a person who is a party to the hearing is entitled to
(i) be present or represented by counsel during the examination, and
(ii) examine the person referred to in paragraph (a) of this subsection,
(c) appoint a person as the examiner to conduct the examination,
(d) order the person to be examined to produce at the examination the records and things or classes of records and things specified in the letter of request,
(e) direct that the evidence obtained by the examination be recorded and certified in the manner specified by the letter of request, and
(f) take any further or other action that the Supreme Court considers appropriate.
(4) The failure of the person entitled under subsection (3) (b) to be present or represented by counsel during the examination or to examine the person referred to in subsection (3) (a) does not prevent the superintendent from reading in the evidence at the hearing if the examination has otherwise been conducted in accordance with the order made under that subsection.
(5) The superintendent must send the letter of request,
(a) if the examination is to be held in Canada, to the Deputy Attorney General for British Columbia, or
(b) if the examination is to be held outside Canada, to the Under Secretary of State for External Affairs of Canada.
(6) The letter of request must have attached to it
(a) any interrogatories to be put to the person to be examined,
(b) if known, a list of the names, addresses and telephone numbers, both in British Columbia and in the other jurisdiction, of
(i) the solicitors or agents of the superintendent,
(ii) the person to be examined, and
(iii) if applicable, the person entitled under subsection (3) (b) to be present or represented by counsel during the examination and to examine the person referred to in subsection (3) (a), and
(c) a translation of the letter of request and any interrogatories into the appropriate official language of the jurisdiction where the examination is to take place, along with a certificate of the translator, bearing the full name and address of the translator, that the translation is a true and complete translation.
(7) The superintendent must file with the Under Secretary of State for External Affairs of Canada or with the Deputy Attorney General of British Columbia, as the case may be, an undertaking to be responsible for all of the charges and expenses incurred by the Under Secretary or the Deputy Attorney General, as the case may be, in respect of the letter of request and to pay them on receiving notification of the amount.
(8) This section does not limit any power the superintendent may have to obtain evidence outside British Columbia by any other means.
(9) The making of an order by a judicial authority referred to in subsection (1) in accordance with a letter of request issued under that subsection does not determine whether evidence obtained under the order is admissible in evidence in a hearing before the superintendent.
(10) Unless otherwise provided by this section, the practice and procedure in connection with appointing a person, conducting an examination and certifying and returning the appointment under this section are, as far as possible, the same as those that govern similar matters in civil proceedings in the Supreme Court.
215.2 (1) In this section, "qualifying letter of request" means a letter of request that
(a) is issued by a court or tribunal of competent jurisdiction in a jurisdiction other than British Columbia,
(b) is issued on behalf of the body that is, in the jurisdiction from which the letter is issued, empowered by the laws of that jurisdiction to administer or regulate deposit business, insurance business or trust business in that jurisdiction,
(i) a matter under investigation by the body referred to in paragraph (b), or
(ii) a matter that is the subject of a hearing before the body referred to in paragraph (b), and
(d) requests that evidence in relation to a matter referred to in paragraph (c) be obtained from a person believed to be located in British Columbia.
(2) On receipt of a qualifying letter of request, the Supreme Court may make the order it considers appropriate and may, without limitation,
(a) order that the person referred to in subsection (1) (d) be examined under oath in the manner, at the place and by the date requested by the foreign court or tribunal,
(b) order, in the case of an examination for the purposes of a hearing referred to in subsection (1) (c) (ii), that a person who is a party to the hearing is entitled to
(i) be present or represented by counsel during the examination, and
(ii) examine the person referred to in paragraph (a) of this subsection,
(c) appoint a person as the examiner to conduct the examination,
(d) order that the person referred to in subsection (1) (d) produce at the examination any records and things or classes of records and things specified in the request,
(e) direct that the evidence obtained by the examination be recorded and certified in the manner requested, and
(f) make any further or other order that the Supreme Court considers appropriate.
(3) An order under subsection (2) may be enforced in the same manner as if the order were made in or in respect of a proceeding brought in the Supreme Court and, if the person referred to in subsection (1) (d) fails without lawful excuse to comply with the order, the person is in contempt of the Supreme Court and is subject to the penalty that the Supreme Court imposes.
(4) A person ordered to give evidence under subsection (2) has the same rights
(a) to receive conduct money or any other money that the person would have had if the examination were held in relation to a proceeding in the Supreme Court, and
(b) to refuse to answer questions and produce records and things or classes of records and things that the person would have in a proceeding in the Supreme Court.
(5) The person appointed by the Supreme Court as the examiner has the authority to administer an oath or affirmation to the person to be examined.
(6) Unless otherwise provided in this section, the practice and procedure in connection with appointing a person, conducting an examination and certifying and returning the appointment under this section are, as far as possible, the same as those that govern similar matters in civil proceedings in the Supreme Court.
216 (1) For the purposes of an inspection, the superintendent, a special examiner and an investigator have the same power that the Supreme Court has for the trial of civil actions
(a) to summon and enforce the attendance of witnesses,
(b) to compel witnesses to give evidence on oath or in any other manner, and
(c) to compel witnesses to produce records and things.
(2) On application to the Supreme Court, a person is liable to be committed for contempt as if in breach of an order or judgment of the Supreme Court if the person fails or refuses
(d) to produce the records or things in that person's custody or possession.
(3) Section 34 (5) of the Evidence Act does not apply for the purposes of a special examination or an investigation.
(4) A person giving evidence in a special examination or an investigation may be represented by counsel.
216.1 For the purposes of an inspection to determine compliance with this Act, the regulations or the rules made by the Authority, the superintendent, a special examiner or an investigator may at any reasonable time enter any of the following places:
(a) the principal place of business of a financial institution or of any affiliate of the financial institution;
(b) any office of a financial institution or of any affiliate of the financial institution;
(c) any place where records are kept relating to a financial institution or to any affiliate of the financial institution;
(d) any place where the superintendent, special examiner or investigator reasonably believes records are being held that relate to whether a person is or has been in compliance with this Act, the regulations or the rules made by the Authority;
(e) subject to section 216.2, a private dwelling where the superintendent, special examiner or investigator reasonably believes evidence is present that is relevant to the purposes of the inspection;
(f) any other place the superintendent, special examiner or investigator reasonably believes to contain evidence relevant to the purposes of the inspection.
216.2 (1) The superintendent, a special examiner or an investigator must not, for the purposes of an inspection, enter premises that are occupied as a residence unless
(a) an occupant of the premises gives consent to enter, or
(b) a warrant under subsection (2) authorizing the entry is issued.
(2) On being satisfied by evidence on oath that there are reasonable grounds to believe that records or other things relevant to the purposes of an inspection are present in premises that are occupied as a residence, a justice may issue a warrant authorizing a person named in the warrant to enter the residence in accordance with the warrant in order to exercise the powers referred to in section 216.3.
216.3 On entering a place under section 216.1 or 216.2, the superintendent, a special examiner or an investigator may do any of the following:
(a) examine records or any other things that may be relevant to the purposes of the inspection;
(b) remove the records or things referred to in paragraph (a) for the purposes of examination or making copies or extracts;
(c) require any person to produce or provide access to records or things in the person's possession or control that may be relevant to the purposes of the inspection;
(d) require a person who may have information related to the purposes of the inspection, including personal information, to provide that information.
216.4 If the superintendent, a special examiner or an investigator certifies as a true copy a copy or extract of a record examined under section 216.3, the certified true copy is admissible in evidence to the same extent as, and has the same evidentiary value as, the record of which it is a copy, without proof of the signature of the superintendent, special examiner or investigator.
216.5 When an inspection is conducted, a person must not
(a) obstruct the superintendent, the special examiner or the investigator, or withhold, destroy, conceal or refuse to provide or produce information, a record or other thing required by the superintendent, the special examiner or the investigator or that is otherwise related to the inspection,
(b) provide false or misleading information,
(c) interfere with the exercise by the superintendent, the special examiner or the investigator of any of the powers under this Division, or
(d) prevent or attempt to prevent the superintendent, a special examiner or an investigator from exercising any of the powers under this Division.
216.6 (1) In this section, "protected individual" means an individual who is or was any of the following:
(c) a person appointed under section 215 (3);
(d) a person acting on behalf of or under the direction of a special examiner, an investigator or a person appointed under section 215 (3).
(2) Subject to subsection (3), no legal proceeding for damages lies or may be commenced or maintained against a protected individual because of anything done or omitted
(a) in the exercise or intended exercise of any power under this Act, or
(b) in the performance or intended performance of any duty under this Act.
(3) Subsection (2) does not apply to a protected individual in relation to anything done or omitted in bad faith.
(4) Subsection (2) does not absolve the Authority from vicarious liability arising out of anything done or omitted by a protected individual for which the Authority would be vicariously liable if this section were not in force.
Division 1.2 — Information and Records
217 (1) On application, the Authority or the superintendent, as appropriate under the applicable provision, may extend the time under this Act within which any return or other record must be filed with, or delivered or submitted to, the Authority or superintendent, as the case may be.
(2) The power to extend time under subsection (1) may be exercised before or after the time limit provided under the Act has expired.
218 (1) An individual or entity that creates, compiles or receives information or records under this Act or under an agreement referred to in section 219 or 219.01 of this Act must not, subject to subsections (2) and (3) of this section, disclose the information or records.
(2) Information or records described in subsection (1) may be disclosed
(a) for the purposes of administering this Act or the regulations,
(b) for the purposes of a prosecution, or
(c) if permitted by another provision of this Act or a provision of the regulations.
(3) The information or records must be disclosed if required by law.
218.1 (1) In this section, "supervisory information" means any of the following information or any part of that information:
(a) any rating assigned by the superintendent to a financial institution to assess its financial condition and any other similar rating that is substantially based on information obtained from the superintendent;
(b) information about any stage of intervention made by the Authority or the superintendent in relation to a financial institution;
(c) any order made under section 67 (2) or 215 in respect of a financial institution;
(d) any order made under section 239 (2);
(e) any order made under section 248 (1) or (2), 275 or 277 in respect of a credit union;
(f) any undertaking given to the superintendent under section 208 or 244 (2) (g);
(g) any decision to make a special inspection, examination and audit under section 214;
(h) any report prepared by or at the request of the Authority or the superintendent, or any recommendation made by the Authority or the superintendent, as a result of an examination, audit, inspection or investigation of a financial institution under this Act, including any related correspondence to or from the directors or officers of the financial institution;
(i) any other prescribed information related to the administration and enforcement of this Act or the Credit Union Incorporation Act.
(2) Despite any other enactment or law, supervisory information is privileged information and a person or entity must not be required, in connection with any legal proceedings, to give or produce evidence relating to any supervisory information.
"self-evaluative compliance audit" means an evaluation, review, assessment, examination, audit, inspection or investigation conducted by or on behalf of a financial institution, either voluntarily or at the request of the superintendent, for the purpose of identifying or preventing non-compliance with, or promoting compliance with or adherence to, this Act, other Acts, regulations, rules, guidelines or industry, corporate or professional standards;
"self-evaluative compliance audit document" means a document or component of a document with recommendations or evaluative or analytical information prepared by or on behalf of a financial institution or the superintendent as a result of or in connection with a self-evaluative compliance audit and includes any response to the findings of a self-evaluative compliance audit, but does not include documents kept or prepared in the ordinary course of business of a financial institution.
(2) Subject to subsection (6), a self-evaluative compliance audit document is privileged information and is not discoverable or admissible as evidence in any civil or administrative proceeding.
(3) Subject to subsection (6), a person or entity must not be required to give or produce evidence relating to a self-evaluative compliance audit or any self-evaluative compliance audit document in any civil or administrative proceeding.
(4) Disclosure of a self-evaluative compliance audit document to a person reasonably requiring access to it, including to a person acting on behalf of a financial institution with respect to the self-evaluative compliance audit, to the external auditor, the board or a committee of the financial institution, or to the Authority or the superintendent, whether voluntarily or pursuant to law, does not constitute a waiver of the privilege with respect to any other person.
(5) A financial institution that prepares or causes to be prepared a self-evaluative compliance audit document may expressly waive privilege in respect of all or part of the document.
(6) The privileges set out in subsections (2) and (3) do not apply
(a) to a proceeding commenced against a financial institution by the Authority or the superintendent in which a self-evaluative compliance audit document has been disclosed,
(b) if the privilege is asserted for fraudulent purposes,
(c) to a proceeding in which a person who was involved in conducting a self-evaluative compliance audit is a party seeking admission of the self-evaluative compliance audit document in a dispute related to the person's participation in conducting the audit, or
(d) to information referred to in a self-evaluative compliance audit document that was not prepared as a result of or in connection with a self-evaluative compliance audit.
219 Subject to the regulations, the Authority and the superintendent may each enter into agreements with the government of Canada, a province or another authority respecting the administration and enforcement of this Act or of comparable legislation of Canada or of another province and, without restricting the generality of this, the agreement may provide for the provision and exchange of information.
219.01 The Authority and the superintendent may each enter into an agreement with other financial services regulatory authorities in Canada and the administrator of a national database of market conduct that provides for the provision and exchange of information respecting the market conduct practices of insurers.
219.1 (1) For the purposes of administering this Act or assisting in the administration of the laws of another jurisdiction regulating deposit business, insurance business or trust business, the superintendent or a person described in section 209 (b) may, directly or indirectly, collect information from, and use information collected from,
(a) the Insurance Council of British Columbia, the deposit insurance corporation, an insurance compensation plan prescribed for the purposes of section 66 (2) or any entity that insures deposits of an extraprovincial trust corporation or an extraprovincial credit union in Canada,
(b) a financial institution or extraprovincial corporation or the auditor or actuary of a financial institution or extraprovincial corporation,
(c) a person licensed under Division 2, or issued a permit under Division 3, of Part 6,
(d) a society referred to in section 191,
(e) a law enforcement agency, government, governmental authority or financial services regulatory authority,
(f) a central credit union designated as the stabilization authority under section 282, or
(g) prescribed organizations referred to in section 289 (3) (p.3) or (p.31),
in British Columbia or elsewhere.
(2) For the purposes of administering this Act or assisting in the administration of the laws of another jurisdiction regulating deposit business, insurance business or trust business, the superintendent may disclose information to, or share information with,
(a) the Insurance Council of British Columbia, the deposit insurance corporation, an insurance compensation plan in Canada prescribed for the purposes of section 66 (2) or any entity in Canada that insures deposits of an extraprovincial trust corporation or an extraprovincial credit union,
(b) the auditor or actuary of a financial institution,
(c) a law enforcement agency, government, governmental authority, financial regulatory authority or securities regulatory authority in British Columbia,
(d) a law enforcement agency, government, governmental authority or financial services regulatory authority in another jurisdiction in Canada with which the superintendent has entered into an arrangement or agreement that relates to or includes the sharing of information,
(e) a central credit union designated as the stabilization authority under section 282, or
(f) prescribed organizations referred to in section 289 (3) (p.3) or (p.31).
219.2 A form established by the superintendent for the purpose of a personal information return under this Act may require the disclosure of personal information by a person who completes and submits a personal information return under this Act.
Division 2 — Insurance Council of British Columbia
220 (1) The Insurance Council of British Columbia, established by regulation under the Insurance Act, R.S.B.C. 1979, c. 200, by this subsection,
(a) despite the repeal of section 357 (2) of that Act by this Act, is continued, and
(b) is constituted as a corporation under the name "Insurance Council of British Columbia".
(2) The council consists of 11 voting members appointed under subsection (3) by the Lieutenant Governor in Council and an unlimited number of non-voting members whom the minister may appoint.
(3) The Lieutenant Governor in Council must appoint the 11 voting members of whom
(a) 2 must be officers or employees of insurers authorized in respect of life insurance business,
(b) 2 must be officers or employees of insurers authorized in respect of general insurance business,
(c) 2 must be agents licensed in respect of life insurance,
(d) 2 must be agents or salespersons licensed in respect of at least one class of general insurance,
(e) one must be a licensed insurance adjuster, and
(f) 2 must be individuals who need not be licensed under this Act and who are to be members at large.
(4) Different voting members of the council may be appointed for terms of office that may vary from member to member, each not exceeding 3 years.
(4.1) A voting member of the council whose term of office has expired may continue to hold office until a successor is appointed.
(4.2) Despite subsection (5), a voting member who continues to hold office under subsection (4.1) may be a voting member for more than 6 years.
(4.3) A voting member appointed under subsection (3) (a), (b), (c), (d) or (e) does not cease to hold office as a voting member only because the member no longer meets the requirements of that subsection.
(5) An individual who is or has been a voting member of the council is eligible for reappointment or appointment as a voting member for successive or additional terms, but is not eligible to be a voting member for more than 6 years altogether.
(6) The minister may appoint an unlimited number of non-voting members of the council for terms of office that may vary from member to member.
(7) The voting members of the council, from among the voting members, must elect a chair of the council to hold office for a single term of one year.
(8) In accordance with the general directives of Treasury Board, the council may
(a) reimburse or pay an allowance to members of the council for reasonable travelling and out-of-pocket expenses necessarily incurred in carrying out their duties, and
(b) pay remuneration to members of the council.
(10) An act of the council is not invalid because of a defect that is subsequently discovered in the appointment of a member.
221 (1) If a voting member is unable to attend personally any meeting of the council, the chair of the council may nominate a non-voting member who is of the same representative character as the voting member to attend the meeting in place of the voting member.
(2) A person nominated under subsection (1) may act in the voting member's place at the meeting and, for the purpose of the meeting, has the same duties and powers, including the power to vote, as the voting member who is unable to attend the meeting.
222 (1) The council must employ an executive director who holds office during the pleasure of the council.
(2) The executive director must
(a) keep minutes of all the proceedings of the council,
(b) conduct all the correspondence of the council,
(c) make preliminary investigations and obtain information respecting matters the council determines, and
223 (1) The council may delegate to one or more committees composed of 3 or more members of the council any duty of the council that is required under this Act to
(b) decide on the matter that is the subject of the hearing.
(2) A member of the council must not participate in a hearing on any matter in which the member has an interest.
(3) The chair of a committee referred to in subsection (1) must be a voting member of the council.
(4) If, under subsection (1), the council delegates to a committee the duty to hold a hearing and decide on the matter that is the subject of the hearing, the committee must hold the hearing and may decide on the matter on behalf of the council.
224 Questions arising at a meeting of the council must be decided by a majority of votes cast by its voting members present at the meeting.
225 (1) [Repealed 2019-39-59.]
(2) The executive director, at the request of the chair or any 2 voting members of the council, must summon a special meeting of the council.
(3) Five days' notice of a special meeting must be given to all voting members.
(4) If a non-voting member of the council serves on a committee that conducts a hearing with respect to a matter that is discussed at a meeting of the voting members of the council, the non-voting member may attend the meeting for the purpose of participating in the discussion of that matter.
(5) Subject to section 221, a non-voting member who attends a meeting under subsection (4) must not vote on council business.
225.1 (1) The council may make rules for the purposes of licensing and regulating the conduct of insurance agents, insurance salespersons, insurance adjusters and employed insurance adjusters.
(2) Without limiting subsection (1) but subject to section 225.2, the council may make rules as follows:
(a) respecting applications for, and issuance and transfer of, licences to insurance agents, insurance salespersons, insurance adjusters and employed insurance adjusters;
(b) providing for the supervision of
(i) salespersons by insurance agents, and
(ii) employed insurance adjusters by insurance adjusters;
(c) respecting nominees for insurance agents, insurance adjusters, partnerships or corporations and the requirements of nominees;
(d) respecting the education, experience or other qualifications of applicants for a licence, including rules conferring the discretion to determine equivalent education, experience or qualifications;
(e) imposing terms, conditions or restrictions on a licence or licensee, or varying those terms, conditions or restrictions;
(e.1) respecting the remuneration of licensees;
(f) respecting or adopting a continuing professional education program that is required of licensees;
(g) establishing codes or standards for the conduct of licensees or incorporating or adopting by reference, in whole or in part and with any changes the council considers appropriate, provincial, national or international association codes, standards or rules for the conduct of licensees;
(h) establishing the criteria to be applied and the procedures to be followed by the council or a committee of the council respecting hearings and suspension, cancellation or restriction of licences and the imposition of fines;
(i) providing for circumstances in which a licence is automatically suspended and invalid and procedures for reinstatement of the licence;
(j) for the purpose of funding the council's expenses, establishing a maximum amount of fees to be collected
(i) from applicants and licensees for
(A) applications for a licence,
(B) the amendment, transfer or reinstatement of a licence, and
(C) the annual fee for a licence, and
(ii) for services performed by the council;
(k) for the purpose of section 92.2 (2), establishing requirements for insurance agents and insurance salespersons who issue, deliver or offer to undertake contracts of insurance through the use of electronic agents.
(3) If the council imposes terms, conditions or restrictions under subsection (2) (e), the council may also deem the terms, conditions or restrictions to be part of every licence or every licence of a class of licences, whether issued before or after the imposition of the term, condition or restriction.
(4) A code, standard or rule referred to in subsection (2) (g) may be adopted as amended from time to time.
(4.1) If the council makes a rule under subsection (2) (j) establishing a maximum amount of a fee, the council may, for the purpose of funding its expenses but subject to the maximum amount in the rule, set the fee by order.
(5) In making a rule, the council may
(a) make different rules for different classes of licences, applicants or licensees, or
(b) exempt an applicant or licensee or a class of applicants or licensees from one or more of the rules made under this section.
(6) The Lieutenant Governor in Council may, by regulation, make a rule or repeal or amend a rule made by the council under this section and the regulation is deemed to be a rule made by the council.
225.2 (1) Before making, amending or repealing a rule under section 225.1, the council must obtain the consent of the minister in accordance with the regulations and comply with any other prescribed procedures and requirements.
(2) The Regulations Act does not apply to a rule made by the council under section 225.1.
(3) The council must publish a copy of its rules in accordance with the regulations.
225.3 If a rule made by the council conflicts with a regulation made by the Lieutenant Governor in Council under section 225.1 (6), the regulation prevails.
226 (1) The Authority may require the council to establish written administrative policies and procedures for exercising its powers and performing its duties under this Act.
(2) The council must submit written administrative policies and procedures prepared under subsection (1) to the Authority.
(3) If the Authority has required the council to establish written administrative policies and procedures under subsection (1), the council must not implement them without first receiving the Authority's consent.
227 In addition to any other duties given to it under this Act, the council
(a) may, and on request must, tender advice to the superintendent on insurance matters,
(b) must maintain proper records respecting council business, on any matter before the council or any decision made by the council including
(i) a copy of every licence issued by the council under this Act,
(ii) a record of every decision made by the council under this Act concerning the issue, amendment, suspension, cancellation or transfer of a licence including the reasons for the decision if required,
(iii) records of appeals heard by the Commercial Appeals Commission and the tribunal from decisions of the council,
(iv) copies of approvals required under the rules made by the council under section 225.1,
(v) every application made to the council under this Act,
(vi) minutes of all proceedings of the council,
(vii) copies of all documents introduced as evidence at hearings, and
(viii) any other records the superintendent may require,
(c) must permit the public to inspect at its office records required to be kept under paragraph (b) (i), (ii), (iii) or (iv) and may publish those records, and
(d) must provide to the public on request and on payment of the prescribed fee a copy or extract of any of the council records required to be kept under paragraph (b) (i), (ii), (iii) or (iv).
230 On and after the effective date specified in a regulation under section 290 and while the regulation remains in effect, a reference in sections 231 to 232.1 and 232.6 to the council, except if the reference is to rules made by the council, must be read as a reference to the superintendent.
231 (1) If, after due investigation, the council determines that the licensee or former licensee or any officer, director, employee, controlling shareholder, partner or nominee of the licensee or former licensee
(a) no longer meets a licensing requirement established by a rule made by the council or did not meet that requirement at the time the licence was issued, or at a later time,
(b) has breached or is in breach of a term, condition or restriction of the licence of the licensee,
(c) has made a material misstatement in the application for the licence of the licensee or in reply to an inquiry addressed under this Act to the licensee,
(d) has refused or neglected to make a prompt reply to an inquiry addressed to the licensee under this Act,
(e) has contravened section 79, 94, 177 or 178 (1), or
(e.1) has contravened a prescribed provision of the regulations,
then the council by order may do one or more of the following:
(f) reprimand the licensee or former licensee;
(g) suspend or cancel the licence of the licensee;
(h) attach conditions to the licence of the licensee or amend any conditions attached to the licence;
(i) in appropriate circumstances, amend the licence of the licensee by deleting the name of a nominee;
(j) require the licensee or former licensee to cease any specified activity related to the conduct of insurance business or to carry out any specified activity related to the conduct of insurance business;
(k) in respect of conduct described in paragraph (a), (b), (c), (d), (e) or (e.1), fine the licensee or former licensee an amount
(i) not more than $50 000 in the case of a corporation or a partnership, or
(ii) not more than $25 000 in the case of an individual.
(2) A person whose licence is suspended or cancelled under this section must surrender the licence to the council immediately.
(3) If the council makes an order under subsection (1) (g) to suspend or cancel the licence of an insurance agent, or insurance adjuster, then the licences of any insurance salesperson employed by the insurance agent, and of any employees of the insurance adjuster are suspended without the necessity of the council taking any action.
(3.1) On application of the person whose licence is suspended under subsection (1) (g), the council may reinstate the licence if the deficiency that resulted in the suspension is remedied.
(4) If an insurance agent's licence or an insurance adjuster's licence is reinstated, the licences of any insurance salespersons or employees of the insurance adjuster who
(a) were employed by that agent or adjuster at the time of the suspension, and
(b) remain employees of that agent or adjuster at the time of reinstatement,
are also reinstated without the necessity of the council taking any action.
(5) If a licensee or former licensee who is fined under subsection (1) (k) fails to pay the full amount of the fine by the date specified by the council, the council may file with the court a certified copy of the order imposing the fine and, on being filed, the order has the same force and effect and all proceedings may be taken on the certificate as if it were a judgment of the court.
232 (1) If the council considers it necessary or desirable
(a) to establish whether there is or has been compliance by a licensee or former licensee, or any officer, director, controlling shareholder, partner or nominee of the licensee or former licensee with the requirements of Division 2 of Part 6, of this Division, of the regulations or rules made by the council under section 225.1 or of the licence of the licensee or former licensee, or
(b) to ascertain any facts relevant to the exercise of the council's power under section 231,
the council may conduct an investigation or appoint, as an investigator, a person acting under the council's direction to conduct an investigation.
(2) The council may determine the scope of an investigation it conducts under subsection (1) and may specify the scope of an investigation by an investigator it appoints to conduct an investigation under subsection (1).
232.1 (1) For the purposes of an investigation under section 232, the council or the investigator has the same power
(a) to summon and enforce the attendance of witnesses,
(b) to compel witnesses to give evidence on oath or in any other manner, and
(c) to compel witnesses to produce records and things and classes of records and things
as the Supreme Court has for the trial of civil actions.
(2) The failure or refusal of a witness
(d) to produce the records and things or classes of records and things in the custody, possession or control of the witness
makes the witness, on application to the Supreme Court, liable to be committed for contempt as if in breach of an order or judgment of the Supreme Court.
(3) Section 34 (5) of the Evidence Act does not apply to an investigation under section 232.
(4) A person giving evidence at an investigation conducted under section 232 may be represented by counsel.
232.2 For the purposes of an investigation under section 232, the investigator may at any reasonable time enter any of the following places:
(a) any place of business of a licensee or former licensee, or of any officer, director, controlling shareholder, partner or nominee of a licensee or former licensee;
(b) any place where records are kept relating to a licensee or former licensee, or to any officer, director, controlling shareholder, partner or nominee of a licensee or former licensee;
(c) any place where the investigator reasonably believes records are being held that relate to whether a person is or has been in compliance with this Act, the regulations, the rules made by the council under section 225.1 or the requirements of a licence;
(d) subject to section 232.3, a private dwelling where the investigator reasonably believes evidence is present that is relevant to the purposes of the investigation;
(e) any other place the investigator reasonably believes to contain evidence relevant to the purposes of the investigation.
232.3 (1) For the purposes of an investigation under section 232, the investigator must not enter premises that are occupied as a residence unless
(a) an occupant of the premises gives consent to enter, or
(b) a warrant under subsection (2) authorizing the entry is issued.
(2) On being satisfied by evidence on oath that there are reasonable grounds to believe that records or other things relevant to the purposes of an investigation under section 232 are present in premises that are occupied as a residence, a justice may issue a warrant authorizing a person named in the warrant to enter the residence in accordance with the warrant in order to exercise the powers referred to in section 232.4.
232.4 On entering a place under section 232.2 or 232.3, the investigator may do any of the following:
(a) examine records or any other things that may be relevant to the purposes of the investigation;
(b) remove the records or things referred to in paragraph (a) for the purposes of examination or making copies or extracts;
(c) require any person to produce or provide access to records or things in the person's possession or control that may be relevant to the purposes of the investigation;
(d) require a person who may have information related to the purposes of the investigation, including personal information, to provide that information.
232.5 If the investigator appointed under section 232 certifies as a true copy a copy or extract of a record examined under section 232.4, the certified true copy is admissible in evidence to the same extent as, and has the same evidentiary value as, the record of which it is a copy, without proof of the signature of the investigator.
232.6 When an investigation is conducted under section 232, a person must not
(a) obstruct the council or the investigator, or withhold, destroy, conceal or refuse to provide or produce information, a record or other thing required by the council or the investigator or that is otherwise related to the investigation,
(b) provide false or misleading information,
(c) interfere with the exercise by the council or the investigator of any of the powers under sections 232 to 232.4, or
(d) prevent or attempt to prevent the council or the investigator from exercising any of the powers under those sections.
Division 3 — Hearings and Appeals
235 (1) The following orders must be in writing:
(a) an order of the Authority under any of the following provisions:
(i) section 26 (1) or (2) [liquidation and dissolution];
(ii) section 31 (b) [filing quarterly statements and producing records];
(iii) section 241.1 [assessment of costs];
(iv) section 248 (2) [supervision of central credit union];
(v) section 249 (1) or (7) [revocation of business authorization];
(vi) section 277 (2) [orders in relation to credit union that is subject to supervision];
(b) an order of the superintendent under any of the following provisions:
(i) section 48 (2) [designation of connected party];
(ii) section 58 [requiring declaration of share ownership];
(iii) section 61 (2) [extension to apply for business authorization];
(iv) section 67 (2) [capital and liquidity of financial institutions];
(v) section 93 [prohibition against unfair, misleading or deceptive documents];
(vi) section 99 (2) [removal of directors and officers];
(vii) section 107 (1) [requiring meeting of directors];
(viii) section 109 (2) [circulation of director's statement];
(ix) section 117 (2) [appointment of auditor];
(x) section 124 [additional reporting by auditor];
(xi) section 125 (1) [appointment of additional auditor];
(xii) section 137 [requiring review of investment and lending policy];
(xiii) section 142 (2) [other authorized investments];
(xiv) section 143 [disposal of investments];
(xv) section 144 (3) [designation of related parties];
(xvi) section 193 (2) [requiring existing societies to apply for business authorization];
(xvii) section 197 [amendment of charter];
(xviii) section 206 [requirement to insure];
(xix) section 211 [requirement to provide information];
(xx) section 214 [special examination];
(xxi) section 215 [investigation];
(xxii) section 241.1 [assessment of costs];
(xxiii) section 244 (2) or (5) [order to cease or remedy];
(xxiv) section 245 [order to freeze property];
(xxv) section 247 [valuation of assets and insurance contracts];
(xxvi) section 248 (1) [requiring central credit union to hold special general meeting];
(xxvii) section 249 (1.01) or (7.1) [revocation of business authorization];
(xxviii) section 253.1 (8) [administrative penalties];
(xxix) section 275 [supervision of credit union];
(xxx) section 276 (e) [duration of supervision];
(xxxi) section 277 (1) [orders in relation to credit union that is subject to supervision];
(xxxii) section 285 (1) [delegation to stabilization authority];
(c) an order of the council under any of the following provisions:
(i) section 231 (1) [council's powers in relation to licences];
(ii) section 241.1 [assessment of costs].
(2) A consent or a refusal of a consent of the Authority under any of the following provisions must be in writing:
(a) section 13 (1) [incorporation];
(b) section 18 (1) [continuation of extraprovincial trust corporation or extraprovincial insurance corporation into British Columbia];
(c) section 19 (1) (b) [continuation of trust company or insurance company out of British Columbia];
(d) section 20 (3) [amalgamation of trust company or insurance company];
(e) section 21 (1) or (3) [arrangement or disposition by reinsurance];
(f) section 226 (3) [administrative policies].
(2.1) A consent or a refusal of a consent of the superintendent under any of the following provisions must be in writing:
(a) section 10.1 (2) (a) or (b) [Business Corporations Act application to extraprovincial corporations];
(b) section 12 (3) [names for trust companies and insurance companies];
(c) section 15 [alteration of memorandum, notice of articles or articles];
(d) section 16 [conversion of special Act insurance company];
(e) section 21 (2) [acquisition of assets];
(f) section 33 [restoration of trust company or insurance company];
(g) section 50 (4) [major share acquisition];
(h) section 67 (2.1) or (3) [capital and liquidity of financial institutions];
(i) section 69 (1) [appointment of receiver];
(j) section 99 (3) [removed directors and officers];
(j.1) section 139.1 (1) [credit union entering into prescribed transaction];
(k) section 141 (2) (c) [investment in a corporation];
(l) section 142 (1) (a), (b) or (c) [other authorized investments];
(m) section 147 [related party transactions];
(n) section 197.1 (3) or (4) [alteration to constitution or bylaws or amalgamation of authorized society];
(o) section 276 (c) [duration of supervision].
(2.2) A refusal of the Authority to issue a business authorization must be in writing.
(3) A refusal of the superintendent to issue
(a) a business authorization, or
(b) a permit under section 187 (1)
must be in writing.
(4) A refusal of the council to issue a licence under Division 2 of Part 6 must be in writing.
(5) Written reasons must be given for
(a) an order referred to in section 237 (2) (a),
(b) a refusal of an order under section 245 (5) or 249 (7),
(c) a refusal of a consent referred to in subsection (2) or (2.1) of this section, and
236 (1) The Authority, superintendent or council, depending on which of them has the power to make the order, give the consent or issue the business authorization, permit or licence may
(a) impose conditions that the person considers necessary or desirable in respect of
(i) an order referred to in section 235 (1),
(ii) a consent referred to in section 235 (2) or (2.1),
(iii) a business authorization,
(iv) a permit issued under section 187 (1), or
(v) a licence issued under Division 2 of Part 6, and
(b) remove or vary the conditions by own motion or on the application of a person affected by the order or consent, or of the holder of the business authorization, permit or licence.
(2) A condition imposed under subsection (1) is part of the order, consent, business authorization, permit or licence in respect of which it is imposed, whether contained in or attached to it or contained in a separate document.
(a) on the written application or with the written permission of the holder, or
(b) in the circumstances described in section 164, 231 or 249 (1.01),
a power of the Authority, superintendent or council under this Act to impose or vary conditions in respect of
(c) a business authorization is exercisable only on or before its issue date, or
(d) a permit under section 187 (1) or a licence under Division 2 of Part 6 is exercisable only on or before its issue date
with effect on and after that date.
237 (1) This section applies to hearings by the Authority, superintendent or council under this Act.
(2) The Authority, superintendent or council, depending on which of them has the power to take the action, must give written notice in accordance with the regulations of the intended action to any person who will be directly affected by it, before taking any of the following actions:
(a) making an order under section 26 (1) or (2), 48 (2), 67 (2), 93 (1) or (2), 99 (2), 109 (2), 125 (1), 137, 143, 144 (3), 193, 197, 231 (1), 241.1 (1) (a), 244 (2) or (5), 245 (1), 247 (2) or (4), 249, 275 or 277 (1) (d) or (2) (a), (c) or (d);
(b) refusing an order under section 245 (5);
(c) giving a consent referred to in section 235 (2) or (2.1) subject to conditions;
(d) imposing or varying conditions on a previously made order referred to in section 235 (1);
(e) imposing or varying conditions on a previously given consent referred to in section 235 (2) or (2.1);
(f) refusing to give a consent referred to in section 235 (2) or (2.1);
(ii) a permit under section 187 (1), or
(iii) a licence under Division 2 of Part 6,
subject to conditions;
(h) imposing or varying conditions in respect of a previously issued
(ii) permit under section 187 (1), or
(iii) licence under Division 2 of Part 6;
(ii) permit under section 187 (1), or
(iii) licence under Division 2 of Part 6.
(3) Not later than 14 days after receiving notice under subsection (2) of an intended action, a person directly affected,
(a) by delivering notice in writing to the Authority may require a hearing before the Authority in any case in which it is the Authority that intends to take the action, or
(b) by delivering notice in writing to the superintendent or the council, as appropriate, may require a hearing
(i) before the superintendent in any case in which it is the superintendent who intends to take the action, and
(ii) before the council in any case in which it is the council that intends to take the action.
(4) A hearing required under subsection (3) must be held within a reasonable time after delivery of the written notice under subsection (2).
(a) the expiry of the 14 day period referred to in subsection (3) if no hearing has been required within that period, or
(b) after the hearing, if one has been required within that period,
the Authority, the superintendent or the council, as the case may be, may proceed in the exercise of the powers conferred under this Act in respect of the matter that was the subject of the notice delivered under subsection (2).
238 (1) If the superintendent or the council, depending on which of them has the power to make the order,
(a) intends to make an order under section 93 (1) or (2) [prohibition against unfair, misleading or deceptive documents] or 231 (1) (g), (h), (i) or (j) [council may suspend, cancel or restrict licences], and
(b) considers that the length of time that would be required to hold a hearing would be detrimental to the due administration of this Act,
then, despite section 237, the superintendent or council, as applicable, may make the intended order without giving a person directly affected by it an opportunity to be heard, but the superintendent or council, as soon as practicable after making the order, must deliver to that person
(c) a copy of the order and written reasons for it, and
(d) written notice of the person's rights under subsection (2).
(2) A person directly affected by an order made under subsection (1) may, within 14 days of receiving a copy of the order,
(a) require a hearing before the superintendent or council, as applicable, by delivering written notice to the superintendent or council, or
(b) appeal the order to the tribunal.
(3) Within a reasonable time after receiving written notice referred to in subsection (2) (a), the superintendent or council, as applicable, must hold the required hearing and following the hearing must confirm, revoke or vary the order.
238.1 (1) If the superintendent, or the Authority, depending on which of them has the power to make the order,
(a) intends to make an order under section 48 (2), 99 (2), 144 (3), 244 (2) or (5), 245 (1), 275 or 277 (1) (d) or (2) (a) or (c), and
(b) considers that the length of time that would be required to hold a hearing would be detrimental to the due administration of this Act,
then, despite section 237, the superintendent or Authority, as applicable, may make the intended order without giving a person directly affected by it an opportunity to be heard, but the superintendent or Authority, as soon as practicable after making the order, must deliver to that person
(c) a copy of the order and written reasons for it, and
(d) written notice of the person's rights under subsection (2).
(2) The person directly affected by an order made under subsection (1) may, within 14 days of receiving a copy of the order,
(a) require a hearing before the superintendent or Authority, as applicable, by delivering written notice to the superintendent or Authority, or
(b) appeal the order to the Supreme Court, and, for this purpose, section 242.4 (2) to (4) applies.
(3) Within a reasonable time after receiving written notice referred to in subsection (2) (a), the superintendent or Authority, as applicable, must hold the required hearing and following the hearing must confirm, revoke or vary the order.
239 (1) A hearing before the Authority, superintendent or council must be open to the public.
(2) If the Authority, superintendent or council considers that a public hearing would be unduly prejudicial to a party or witness, the Authority, superintendent or council, as the case may be, may order that the public be excluded from all or part of the hearing.
240 (1) For the purpose of hearings under this Act, the Authority, a panel of it, the superintendent or the council has the same power
(a) to summon and enforce the attendance of witnesses,
(b) to compel witnesses to give evidence on oath or in any other manner, and
(c) to compel witnesses to produce records and things
that the Supreme Court has for the trial of civil actions, and the failure or refusal of a person
(g) to produce the records or things in the person's custody or possession
makes the person, on application to the Supreme Court, liable to be committed for contempt as if in breach of an order or judgment of the Supreme Court.
(2) Section 34 (5) of the Evidence Act does not apply for the purpose of hearings under this Act.
(3) A person giving evidence at a hearing under this Act may be represented by counsel.
241 (1) A person convicted of an offence under this Act is liable, after review and filing of a certificate under this section, for the costs of the investigation of the offence.
(2) The superintendent may prepare a certificate setting out the cost of the investigation of an offence, including the cost of the time spent by the superintendent or the Authority's staff and any fees paid to an expert, investigator or witness.
(3) The superintendent may apply to an associate judge or registrar of the Supreme Court to review the certificate under the Supreme Court Civil Rules as if the certificate were a bill of costs, and on the review the associate judge or registrar must review the costs and may vary them if the associate judge or registrar considers that they are unreasonable or not related to the investigation.
(4) The tariff of costs in the Supreme Court Civil Rules does not apply to and in respect of a certificate reviewed under this section.
(5) On the review, the associate judge or registrar of the Supreme Court must take into account any costs already paid by the defendant under section 233 before its repeal or section 241.1 (1) in respect of the same investigation.
(6) After review, the certificate may be filed in the court in which the proceedings were heard and may be enforced against the person convicted as if it were an order of the court.
241.1 (1) If an investigation or hearing is held under this Act, the Authority, the superintendent or the council may by order require the financial institution, licensee, former licensee or other person subject to the investigation or hearing to pay, in accordance with the regulations, the costs, or part of the costs, of one of the following:
(c) the investigation and the hearing.
(2) Costs assessed under subsection (1)
(a) must not exceed the actual costs incurred by the Authority, superintendent or council for the investigation and hearing, and
(b) may include the costs of remuneration for employees, officers or agents of the Authority, superintendent or council who are engaged in the investigation or hearing.
(3) If a person fails to pay costs as ordered by the date specified in the order or by the date specified in the order made on appeal, if any, whichever is later, the Authority, superintendent or council, as the case may be, may file with the court a certified copy of the order assessing the costs and, on being filed, the order has the same force and effect and all proceedings may be taken on the order as if it were a judgment of the court.
242 (0.1) In this section, "consent" means consent under any of the following provisions:
(a) section 10.1 (2) (b) [Business Corporations Act application to extraprovincial corporations];
(b) section 21 (2) [acquisition of assets];
(c) section 67 (2.1) [capital and liquidity of financial institutions];
(d) section 141 (2) (c) [investment in a corporation];
(e) section 142 (1) (a) [other authorized investments].
(1) A person directly affected by any of the following decisions of the superintendent or the council, depending on which of them has the power to make the decision, may appeal the decision to the tribunal:
(a) an order under any of the following provisions:
(i) section 93 [prohibition against unfair, misleading or deceptive documents];
(ii) section 109 (2) [circulation of director's statement];
(iii) section 125 (1) [appointment of additional auditor];
(iv) section 137 [requiring review of investment and lending policy];
(v) section 143 [disposal of investments];
(vi) section 231 (1) [council may suspend, cancel or restrict licences and impose fines];
(vii) section 247 (2) or (4) [valuation of assets and insurance contracts];
(viii) section 253.1 (8) [administrative penalties];
(a.1) an order under section 241.1 [assessment of costs] that is not related to a decision that may be appealed to the Supreme Court under section 242.4 (1);
(b) a consent given subject to conditions;
(c) the imposition or variation of conditions on a previously given consent;
(d) a refusal to give a consent;
(e) the issuance subject to conditions of a licence under Division 2 of Part 6;
(f) the imposition or variation of a term, condition or restriction on a previously issued licence under Division 2 of Part 6;
(g) and (h) [Repealed 2021-2-29.]
(i) a refusal to issue a licence under Division 2 of Part 6.
(2) No person is disqualified from acting as a member of a panel of the tribunal on the hearing of an appeal only because the person is a depositor in a credit union, an extraprovincial credit union or an extraprovincial trust corporation or is a policy holder of an insurance company or extraprovincial insurance corporation that is the subject of the proceedings before the panel.
(a) is a party to an appeal of a decision of the council to the tribunal, and
242.1 (1) The Financial Services Tribunal is continued consisting of
(a) one member appointed by the Lieutenant Governor in Council as the chair after a merit-based process, and
(b) other members appointed by the Lieutenant Governor in Council after a merit-based process and consultation with the chair.
(1.1) Tribunal members must faithfully, honestly and impartially perform their duties and must not, except in the proper performance of those duties, disclose to any person any information obtained as a member.
(2) The Lieutenant Governor in Council may designate one member of the tribunal to be vice chair after consultation with the chair.
(3) The Lieutenant Governor in Council may terminate the appointment of a member for cause.
(a) is the chief executive officer of the tribunal,
(b) may hire and supervise staff required for the exercise of the powers and the performance of the duties of the tribunal, provided the staff are hired under the Public Service Act,
(c) may, subject to this Act and the regulations, establish forms and rules of practice and procedure, and
(d) must prepare and deliver to the minister an annual report describing the number of appeals heard by the tribunal, the issues under consideration, the disposition of those issues, and any other matter the minister may direct.
(7) The following provisions of the Administrative Tribunals Act apply to the tribunal or to appeals conducted by the tribunal:
(a) Part 1 [Interpretation and Application];
(d) Part 4 [Practice and Procedure], except the following:
(i) section 17 [withdrawal or settlement of application];
(ii) section 21 [notice of hearing by publication];
(iii) section 23 [notice of appeal (exclusive of prescribed fee)];
(iv) section 25 [appeal does not operate as stay];
(v) section 26 [organization of tribunal];
(vi) section 27 [staff of tribunal];
(vii) section 28 [facilitated settlement];
(viii) section 29 [disclosure protection];
(ix) section 30 [tribunal duties];
(xi) section 34 [power to compel witnesses and order disclosure];
(xii) section 36 [form of hearing of application];
(e) section 44 [tribunal without jurisdiction over constitutional questions];
(f) section 46.2 [limited jurisdiction and discretion to decline jurisdiction to apply the Human Rights Code];
(g) Part 6 [Costs and Sanctions], except sections 47.1 [security for costs] and 47.2 [government and agents of government];
(j) section 57 [time limit for judicial review];
(k) section 58 [standard of review with privative clause];
(n) Part 10 [Miscellaneous], except section 62 [application of Act to BC Review Board].
242.2 (1) [Repealed 2004-45-100.]
(2) Subject to subsection (10) (a), a decision is not stayed by the filing of an appeal.
(3) On receipt of a notice of appeal and any prescribed fee, the chair must consider the appeal or assign another member of the tribunal to consider the appeal.
(4) At any time, the chair may do any of the following:
(a) extend or abridge any time limit contained in this section;
(b) refer a matter that is before a member to another member.
(c) and (d) [Repealed 2004-45-100.]
(5) Subject to subsection (8), an appeal is an appeal on the record, and must be based on written submissions.
(6) For the purposes of subsection (5), the record consists of the following:
(a) the record of oral evidence, if any, before the original decision maker;
(b) copies or originals of documentary evidence before the original decision maker;
(c) other things received as evidence by the original decision maker;
(d) the decision and written reasons for it, if any, given by the original decision maker.
(7) The original decision maker must forward the record described in subsection (6) to the chair within 14 days of receiving the chair's request for it.
(8) On application by a party, the member considering the appeal may do the following:
(b) permit the introduction of evidence, oral or otherwise, if satisfied that new evidence has become available or been discovered that
(i) is substantial and material to the decision, and
(ii) did not exist at the time the original decision was made, or, did exist at that time but was not discovered and could not through the exercise of reasonable diligence have been discovered.
(9) If oral submissions or new evidence are permitted under subsection (8), the member considering the appeal may
(a) require the parties to participate in any proceeding that might assist in clarifying or narrowing the facts or issues, or otherwise facilitating the appeal,
(b) make any order in respect of matters arising from a proceeding held under paragraph (a),
(c) subject to this Act, the regulations and any rules set by the chair under section 242.1 (5) (c), determine the manner in which a proceeding held under paragraph (a) or an appeal is conducted,
(d) require the party requesting the attendance of a witness to pay the costs in connection with the attendance of that witness, and
(e) proceed with a proceeding held under paragraph (a) or an appeal in the absence of the appellant, if the appellant has been given at least 10 days notice of the proceeding or the appeal, as applicable.
(a) on application, the member hearing the appeal may
(i) stay the decision under appeal for any length of time, with or without conditions, or
(ii) lift a stay of a decision under appeal for any length of time, with or without conditions,
(b) at any time before or during a hearing, but before its decision, the member hearing the appeal may make an order requiring a person
(i) to attend an oral or electronic hearing to give evidence on oath or affirmation or in any other manner that is admissible and relevant to an issue in an appeal, or
(ii) to produce for the member hearing the appeal or a party a document or other thing in the person's possession or control, as specified by the member hearing the appeal, that is admissible and relevant to an issue in an appeal,
(b.1) the member hearing the appeal may apply to the court for an order
(i) directing a person to comply with an order made by the member hearing the appeal under paragraph (b), or
(ii) directing any directors and officers of a person to cause the person to comply with an order made by the member hearing the appeal under paragraph (b),
(c) the member hearing the appeal may permit a person who is not a party to the appeal to provide submissions in respect of the appeal if, in the opinion of the member, the submissions would substantially assist in the determination of the appeal,
(e) section 34 (5) of the Evidence Act does not apply,
(e.1) if an appellant withdraws all or part of an appeal or the parties advise the member hearing the appeal that they have reached a settlement of all or part of an appeal, the member may order that the appeal or part of it is dismissed, and
(g) the original decision maker is a party to an appeal of a decision of the original decision maker to the tribunal.
(11) The member hearing the appeal may confirm, reverse or vary a decision under appeal, or may send the matter back for reconsideration, with or without directions, to the person or body whose decision is under appeal.
(12) For a decision under subsection (11), the member hearing the appeal must provide written reasons, and forward those reasons to the chair for distribution to the parties.
242.3 (1) In respect of this Act or any other Act that confers jurisdiction on the tribunal, the tribunal has exclusive jurisdiction to
(a) inquire into, hear and determine all those matters and questions of fact and law arising or requiring determination, and
(b) make any order permitted to be made.
(2) A decision of the tribunal on a matter in respect of which the tribunal has exclusive jurisdiction is final and conclusive and is not open to question or review in any court.
242.4 (0.1) In this section, "consent" means consent under any of the following provisions:
(a) section 13 (1) [incorporation];
(b) section 15 [alteration of memorandum, notice of articles or articles];
(c) section 16 [conversion of special Act insurance company];
(d) section 18 (1) [continuation of extraprovincial trust corporation or extraprovincial insurance corporation into British Columbia];
(e) section 19 (1) (b) [continuation of trust company or insurance company out of British Columbia];
(f) section 20 (3) [amalgamation of trust company or insurance company];
(g) section 21 (1) or (3) [arrangement or disposition by reinsurance];
(h) section 33 [restoration of trust company or insurance company];
(i) section 50 (4) [major share acquisition];
(j) section 67 (3) [capital and liquidity of financial institutions];
(k) section 69 (1) [appointment of receiver];
(l) section 99 (3) [removed directors and officers];
(m) section 142 (1) (b) or (c) [other authorized investments];
(n) section 147 [related party transactions];
(o) section 197.1 (3) or (4) [alteration to constitution or bylaws or amalgamation of authorized society];
(p) section 276 (c) [duration of supervision].
(1) A person directly affected by any of the following decisions of the Authority or the superintendent, depending on which of them has the power to make the decision, may appeal the decision to the Supreme Court:
(a) an order under any of the following provisions:
(i) section 48 (2) [designation of connected party];
(ii) section 67 (2) [capital and liquidity of financial institutions];
(iii) section 99 (2) [removal of directors and officers];
(iv) section 144 (3) [designation of related parties];
(v) section 193 (2) [requiring existing societies to apply for business authorization];
(vi) section 197 [amendment of charter];
(vii) section 244 (2) or (5) [order to cease or remedy];
(viii) section 245 (1) [order to freeze property];
(ix) section 275 [supervision of credit union];
(x) section 277 (1) (d) or (2) (a), (c) or (d) [orders in relation to credit union that is subject to supervision];
(a.1) an order under section 241.1 [assessment of costs] that is related to a decision that may be appealed to the Supreme Court under this subsection;
(a.2) any other order of the Authority under section 241.1;
(b) a consent given subject to conditions;
(c) the imposition or variation of conditions on a previously given consent;
(d) the refusal to give a consent;
(e) the issuance, subject to conditions, of
(i) a business authorization, or
(ii) a permit under section 187 (1);
(f) the imposition or variation of a condition on a previously issued
(i) business authorization, or
(ii) permit under section 187 (1);
(i) a business authorization, or
(ii) a permit under section 187 (1).
(2) The Authority is a party to an appeal of a decision of the Authority to the Supreme Court.
(2.1) The superintendent is a party to an appeal of a decision of the superintendent to the Supreme Court.
(3) An appeal under subsection (1) is an appeal on the record.
(4) For the purposes of subsection (3), the record consists of the following:
(a) the record of oral evidence, if any, before the Authority or superintendent, as the case may be;
(b) copies or originals of documentary evidence before the Authority or superintendent, as the case may be;
(c) other things received as evidence by the Authority or superintendent, as the case may be;
(d) the decision of the Authority or superintendent, as the case may be;
(e) the written reasons for the decision, if any.
(5) An appeal under subsection (1) must be commenced not more than 30 days after the earlier of the following:
(a) the mailing to the appellant, at the appellant's most recent address known to the Authority or superintendent, as the case may be, of a notice of the decision to be appealed;
(b) actual notice to the appellant of the decision to be appealed.
243 (1) In this section, "protected individual" means an individual who is or was any of the following:
(a) a director of the Authority;
(b) the chief executive officer of the Authority;
(c) an administrator appointed under section 248 (2) or 277 (2) (a);
(d) a person appointed under section 277.2;
(f) an individual acting on behalf of or under the direction of the Authority, the Authority's chief executive officer or the superintendent;
(h) an individual acting on behalf of or under the direction of the council;
(i) an individual acting on behalf of or under the direction of the deposit insurance corporation.
(2) Subject to subsection (3), no legal proceeding for damages lies or may be commenced or maintained against a protected individual because of anything done or omitted
(a) in the exercise or intended exercise of any power under this Act, or
(b) in the performance or intended performance of any duty under this Act.
(3) Subsection (2) does not apply to a protected individual in relation to anything done or omitted in bad faith.
(3.1) Subsection (2) does not absolve the Authority from vicarious liability arising out of anything done or omitted by an individual referred to in any of paragraphs (a) to (f) of the definition of "protected individual" for which the Authority would be vicariously liable if this section were not in force.
(3.2) Subsection (2) does not absolve the government from vicarious liability arising out of anything done or omitted by an individual referred to in paragraph (g) or (h) of the definition of "protected individual" for which the government would be vicariously liable if this section were not in force.
(3.3) Subsection (2) does not absolve the deposit insurance corporation from vicarious liability arising out of anything done or omitted by an individual referred to in paragraph (i) of the definition of "protected individual" for which the corporation would be vicariously liable if this section were not in force.
(4) Subject to subsection (5), all communications with, and information supplied and records or things produced to, the Authority, superintendent or council with respect to
(a) an applicant for an insurance agent, insurance salesperson, insurance adjuster or employed insurance adjuster licence, a licensee or former licensee,
(b) an applicant for a business authorization or a permit under section 187,
(c) an inquiry, examination or investigation under this Act, or
(d) the compliance of a person with this Act
are privileged and no action may be brought against a person as a consequence of the person having made that communication.
(5) Subsection (4) does not apply to a person who makes a communication, supplies information or produces records or things maliciously.
Contents | Part 1 | Part 2 | Part 3 | Part 4 | Part 5 | Part 6 | Part 7 | Part 8 | Part 9 | Part 10 and 11
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